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Finance Vs Marketing

Updated on May 3, 2024
Article bySayantan Mukhopadhyay
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

What Is Finance Vs Marketing?

Finance is defined as procurement, management, and effective utilization of an entity’s finance to increase the organization’s overall wealth and achieve its objectives and goals in a limited period. In contrast, marketing is an action or a task of promoting its business, its products, and its services. It includes creating and expanding the business’s contact and reach, helping it grow in the competitive world.

Finance Vs Marketing

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Finance and Marketing are two domains of study that every business needs. In simple terms, the marketing department takes responsibility for generating revenue. The finance department is responsible for transporting this revenue in different activities to ensure maximum growth of the wealth.

Finance Vs Marketing Explained

Business finance vs marketing is a highly discussed and debated concept. Finance deals with the process of money management through proper and profitable investments. It is the concept of management of financial resources in an entity. It may involve different aspects like budgeting, analysis and evaluation, raising capital, taking investment decisions and management of risk.

However, the marketing process is different. It involves promotion or letting the customers know the type of product that the company wants to make available to the customer to meet their needs and demands. Various methods of sales promotion like online advertising, mobile advertising, personal visits, surveys and seminars are conducted to make the products reach the customer.

Both the above methods involve skill and knowledge about the processes. Finance degrees and marketing degrees are there is the professional field where individuals can gain knowledge regarding financial analysis, risk management, market research, advertising, branding, customer relations, etc. It is to be noted that both of them business finance vs marketing are essential components that are needed in the success of any organization because they are interdependent on each other. Finance ensures that resources and always available and properly utilised leading to financial stability, while marketing helps in customer engagement, satisfaction and helps in increasing sales and revenue. Both combined helps in growth and profitability of the business.

So how are these two different? In this article, we will investigate each of these domains of study and carefully analyze the outlook of these subjects, the education you require to be able to be proficient in these fields, the primary tasks or responsibilities you need to handle, work-life balance, compensation you would receive and lastly the pros and cons of being in these two professions.

They are very broad in scope. We will pick up the most common professions under this domain and discuss them in detail.

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Let’s get started.

Comparative Table

Let us go through the comparative table of marketing vs finance below to understand the differences between the two concepts.

ParameterFinanceMarketing
What is it?The finance department is responsible for transporting these revenues in different activities to ensure maximum growth of the wealth.The marketing department takes responsibility for generating the revenue
EducationBachelor of Commerce, Bachelor in Finance & Accounts, Bachelor in Economics, Bachelor in Mathematics, etc. Economics and Mathematics, MBA in FinanceGraduation in any field of interest. MBA in Marketing.
it’s all about understanding the business side of things and learning how to be a better salesman.
Hard Skills Required
  • Market Research
  • Solid understanding of Demand Supply
  • Customer Needs / Wants
  • Taking Feedback
  • Copyrighting
  • Branding
  • Promotions
  • Advertisements

 

TravelMost finance professionals do not travel much. You can safely assume that 90% of the time is spent in Office.Marketing Professionals in most cases travel (more than 80% of the time). They are found more with the clients than in the office
Soft Skills RequiredAbility to work for an extended period (80-100+ hours a week), Excellent Communication Skills Required, Writing Skills, Negotiation SkillsPresentation Skills
Ability to understand Clients Requirement, Communication Skills, Excellent Presentation Skills, Taking Ownership
Primary Tasks
  • Source funds for the business related to borrowing, IPOs, etc
  • Investments of funds
  • Investment of funds in projects
  • MIS, report writing, communicating to the Top Management
  • Performing Market Research
  • Understanding the Market for Bridge the gap by offering products that consumer wants
  • sales promotion, direct selling, online advertisements, email marketing, copywriting
  • Delivery of Products
  • Feedback of Product and Services
Inter-dependency?High. If the finance department is being removed from any organization, then the marketing function would generate profits but will in no way be fruitful as there won’t be proper distribution of profits.



High.  Suppose the marketing function is being removed from an organization. In that case, no revenue will be generated, and thus the finance department would not be required at all other than sourcing the funds from other resources for production.
Work-Life Balance



It varies depending on the roles. Investment bankers have no work-life balance. Financial Analysts’ work life is relatively stable. Those in Corporate Finance roles can also enjoy a reasonable work-life balance.




Sales Targets are the key. For a talented salesman / Marketing Professional, there could be no issues related to work-life balance. However, many may have to slog to achieve targets. Also, social media specialists or copywriters may not need to stay late or work beyond the stipulated time.
CompensationAccording to Payscale.com, the median salary of finance professionals is US $84,800 per annum. However, please note that it varies across departments, designations, and rolesAs per Salary.com, the median salary of the marketing manager is US $93,459 per annum. But this amount varies as per the scope of the work, the position/designation, the core areas
Pros
  • Lots of choices with finance
  • Investment Banking
  • Equity Research
  • Risk management
  • Corporate Finance
  • Capital Budgeting
  • Accountant
  • Finance Controller
  • Quantitative Finance
  • Awesome Work-Life Balance
  • Lucrative Compensation
Cons
  • More of a personality job than a technical job
  • Presentation and negotiation skills make a lot of difference
  • Face rejections from clients
Top Companies
Popular CertificationsCFA, FRM, PRM, CFP, CIMA, CMA, ACCA, CPA and moreAMA’s PCM, Google Ads Certification, DMA Certification, Scrum Alliance – Scrum Certification
Future StatusFinance has been an age-old profession. All fields should continue to operate as they were in the past. Some upcoming fields in finance include automation in Finance algorithmic tradingAlgorithmic TradingAlgorithmic trading is an automated buying and selling process with a programmed algorithm to determine the price, volume and timing of order. Algo-trading is a high-frequency trading technology that enables the exchange of stocks and other assets in the financial market.read more, Behavioral Finance, etcIn this digital age, Marketing professionals have a great future – expected to know number games and learn statistics, visualizing tools for analysis, R Language, and more. Marketing professionals are also expected to integrate Data Science and Sales & Marketing Data.

Even if marketing vs finance are two completely different fields, another will hardly exist in an organization without one. Finance vs. Marketing Outlook

  • For example, suppose the marketing function is being removed from an organization. In that case, no revenue will be generated, and thus the finance department would not be required at all other than sourcing the funds from other resources for production
  • Similarly, if the finance department is being removed from any organization, then the marketing function would generate profits but will in no way be fruitful as there won’t be proper distribution of profits.

So we can understand that these two functions are complementary to each other.

Outlook

Now we will pick each of them and see the outlook of each function.

Finance

In the case of marketing, it is an art and science of attracting businesses and people to buy your products and services and your philosophy of business.

Marketing

  • Through marketing, the selling process becomes much easier. But marketing has evolved a lot. In the middle 90s, marketing was used to fulfill only one objective: to generate profits. Thus the tools and techniques used back then have become obsolete for the current generation of people. Today, marketing is based on permission.
  • No one likes to be bombarded with irrelevant advertisements even when the products and services you offer are of high quality. You need first to understand what customers want and then find a way to fulfill the customers’ and this is the way things work in marketing nowadays.
  • It’s completely customer-centric and even before making profits, the company should concentrate mainly on fulfilling the expectations of your existing and potential customers.
  • Marketing is not only used to generate revenues but also to source the best talents. If a company sells good products and services and has impeccable integrity, more and more talents would get attracted to the company.
  • But that will not happen just by sitting across. It’s the function of marketing to convey the message and reach the existing & potential customers and people in general. Once a company’s marketing is taken care of, everything else takes care of itself.

Degree

If you want to do good in finance, you need technical skills and communication and interpersonal skills. But to be good at marketing, you need to understand business and be a master of communication more than anything else.

So, let’s have a look at what education to understand finance vs marketing which is better and which would be ideal for both of these fields.

#1 – Finance Careers

  • If we talk about finance, there are many courses and many avenues you can take up as your potential career choice. But the question remains which one! If you want to be in finance, you should start with the core subjects at your graduation.
  • The possible degrees you can pursue in your graduation are Bachelor of Commerce, Bachelor in Finance & Accounts, Bachelor in Economics, Bachelor in Mathematics, etc.
  • Economics and mathematics are special if you want to go in the core finance domain like in investments or risk management.
  • After graduation, you can go for an MBA in Finance from a top-notch institute, or you can opt for CFA depending on whatever career goals you have.
  • There are multiple opportunities and openings if you decide to go for the finance domain. So set your career goal first, do your research and then go ahead with your preferred career choice.

#2 – Marketing Career

  • In the case of marketing, it’s all about understanding the business side of things and learning how to be a better salesman.
  • You always don’t need to go door-to-door to sell pieces of stuff, but you need to know your customers, how they respond to changes and who they are and their tastes and preferences.
  •  Generally speaking, the best option for you is to pursue a graduation field where you want to get in shortly and then further your studies accordingly.
  • After your graduation, MBA in Marketing from a reputed institute will make the work easy for you. The marketing function is very important because if you ever dream of becoming an entrepreneur, the first thing you will need is marketing which will ultimately help you generate profits for your business.

Primary Tasks Or Roles

This section will give your ideas about finance vs marketing which is better and what you can expect from these two domains. What types of tasks you need to perform daily and what skills you would require would be of immense importance.

#1 – Finance Professionals

Now, you may understand that finance is a very vast field, and to make a list of key tasks from all is a difficult task. Still, let’s look at the usual tasks you need to perform as finance professionals. According to your chosen finance profession, you can add up a few core tasks to the list below.

#2 – Marketing Professionals

According to the designation and scope of the work, you need to perform a few core tasks. Marketing professionals also have to perform a few typical common tasks for most marketing professionals. As finance professionals, marketing professionals can also choose core areas like social media, copywriting, strategy, key-account handling, salesmanship, etc.

Let’s have a look at the primary tasks of marketing professionals –

  • The most important task of marketing professionals is market research. If you have a product or a service to offer, your primary job would be to know about the market. You need to go deep and find out about the potentially prone customers to your types of products/services, their age, lifestyle, habits, expectations from a product/service, and many more such insignificant details. Once you know these, you will be able to take action on the inputs. There are many arguments on whether marketing research is the job of core marketing professionals or not, but the truth is it’s part of the marketing function. If the organization’s scope is huge, then market research becomes the responsibility of market research professionals.
  • Aftermarket research, the main concern of marketing professionals is to bridge the gap between the products/services and potential customers. Thus, as marketing professionals, you can take many measures to reduce the gap. You can do sales promotion, direct selling, online advertisements, email marketing, copywriting, etc.
  • The next step is delivery. There’s a part of customer service inherent within it, but it’s also one of the most important marketing tasks as it ensures repeat customers. Only planning about the strategy won’t help. You need to know how to deliver the products/services so that the customers’ experience becomes maximum.
  • Once the customer is satisfied, you need to go one step further and offer to know how their experience is with the products and services offered by your company. Using that feedback, you can improve your products and services further.

Work-life balance

In the case of finance professionals, work-life balance differs from profession to profession. For example, investment banking professionals have no work-life balance as they need to work even on the weekends to meet the clients’ needs. Whereas, a finance analyst’s work-life balance is good as he works scheduled hours and gets enough time to spend his weekend with his family.

In the case of marketing professionals, work-life balance differs as well. Professionals directly linked to sales may need to stay late to achieve their targets. But people who are social media specialists or copywriters may not need to stay late or work beyond the stipulated time.

Salary

According to Payscale.com, the median salary of finance professionals is US $84,800 per annum.

Median Salary

source: payscale.com

Let’s have a look at the salary of finance professionals as per the experience –

finance-manager-salary-experience-wise

source: payscale.com

Let’s have a look at the salary of marketing professionals.

marketing-managers-salary

source: payscale.com

The compensation of marketing managers is lucrative.

As per Salary.com, the median salary of the marketing manager is US $93,459 per annum. But this amount varies as per the scope of the work, the position/designation, the core areas they cover, and how much experience they have in a similar field.

Career Pros & Cons

It is important to understand the pros and cons of both the concepts so that and candidate can identify the uses and also decide which is a suitable one fro them if they want to take up any of these fields as career option. The detailed benefits and drawbacks are given below.

#1 – Finance

Pros of Finance Career
Cons of Finance Career
  • To be compensated well, you need to choose a core finance domain and then become proficient in it.
  • If you choose to work in general finance, the compensation is not lucrative.
  • Even if work-life balance differs according to the core profession, work pressure is always there in the finance domain.

#2 – Marketing

Pros of Marketing Career
  • The work-life balance is great. Other than sales professionals, rarely marketing professionals need to go beyond the scheduled hours.
  • They compensated very well. The main reason for getting lucrative compensation is the very nature of the function. Marketing helps generate revenues for the company.
Cons of Marketing Career
  • It’s more of a personality job than a technical job. If you can present yourself well, you will make your mark.
  • Thus not many professionals become successful in the field of marketing.
  • Rejection is a natural part of this profession.
  • Your effort often won’t work, and you need to step beyond your failures, learn from them and begin again.

Digital Finance Vs Marketing

Finance and marketing in the digital field are two completely different concepts which requires the use of digital technologies in both the fields so that they can be used in the business operations. Let us analyse the use of digital procedures in each of them.

Finance:

Here, various financial services are integrated with the digital process. Some examples are net banking, mobile banking, digital wallet, robo-advisors, financial instruments based on blockchains, etc. They make the entire financial service more convenient, accessible and efficient. Digital finance provides innovation and better customer satisfaction. Babks and financial institutions can reach out to more and more people for digital authentication of documents and easy and time saving transactions.

However, the process heavily relies on technological advancements, which may not always be available of work smoothly. There may be internet connectivity issues, data may not be uploaded on time or internet may not be available in all places. It also requires strict compliance with regulatory and security measures so as to protect privacy and security of financial data.

Marketing:

The digital marketing process uses digital channels and methods like search engines, social media, emails or mobile applications to for the purpose of product and service promotion and also attract more audience. The processes include social media marketing, content marketing, search engine optimizations, etc. Through these channels they are able to attract potential customers, streamline the process, build brand awareness and generate leads to increase conversion and sales.  

Businesses employ automation tools, customer management systems, search engine algorithms and various other softwares for marketing campaigns and keep a track on how effective they are. Proper security measures and implemented to protect data and privacy. Thus, both are critical in the modern world of business where competition and customer satisfaction plays a very important role. The digital concept helps to revolutionize the finance and marketing industry.

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This has been a guide to what is Finance Vs Marketing. We explain salary levels and degree earned in both along with career prospects & digital process. You may also have a look at the following articles –

Reader Interactions

Comments

  1. Saida says

    Thanks a lot!

  2. Akshat Malhotra says

    Stumbled on this site by chance….Decided to stay back by choice!

    Great work Dheeraj. Indeed useful information.

  3. Bradley Dsouza says

    Very interesting blog mr Dheeraj. Thanks a lot for sharing your knowledge with us. I am almost reading your blogs since few months and I found all of your articles very informative and well explained. Keep on sharing.

  4. Andres Rojas says

    Very impressive. Thanks for bringing such brilliant content in front of us. Keep on working. i want to understand the concept of capital budgeting. What is capital budgeting?

    • Dheeraj Vaidya says

      welcome and thanks for your kind words. Capital budgeting is the process of planning expenditure on fixed assets which cash flows are expected to extend beyond one year.